JERSEY’S new Income Tax Instalment System, which taxes Islanders on their previous year’s wages, could change to pay as you earn.

The Itis system is being introduced in January, but Finance and Economics president Senator Terry Le Sueur said yesterday that within a couple of years, a move to a current payment system could be considered.

The Senator told States Members that when they reviewed the system in a year or two they would consider making the alteration.

He said: ‘We are always prepared to reform but it needs time to let it settle in before we start tinkering.

In a year or two we will consider changes and they could include going to current year basis for everyone.’ The news was cautiously welcomed by business representatives, who said it would be sensible to tax people on their current earnings.

The Jersey Chamber of Commerce said that while they supported the principle of an income tax instalment system, the timing of the present system’s introduction in January was ‘unfortunate’.

Chamber chief executive Andrew Goodyear said: ‘The high street is already experiencing a difficult trading environment and the likely impact Itis will have on consumer spending in the New Year will not help.

‘Investigating the possibility of moving to a pay-as-you-earn-type system would seem sensible.

The current proposal of transferring new taxpayers from a current to previous-year basis after a number of years appears regressive.

However, there are likely to be aspects of the current system which will need to be looked at before any wholesale changes could be contemplated.’